Intelligent Media United Business Media. 2 2003 Highlights Strong profit growth Effective cost management Improving yields and revenue Successful investment.

1

Intelligent Media Intelligent Media

United Business Media

2United Business Media

2003 Highlights2003 Highlights

Strong profit growth

Effective cost management

Improving yields and revenue

Successful investment programme

Outlook positive

*before amortisation of intangibles and goodwill and prior year exceptionals

Financial Results Financial Results

Turnover (£m)

Profit before tax * (£m)

EPS * (p)

Operating margin * (%)

Dividend per share (p)

Net cash (£m)

20032003 2002 Change%

746.7

103.3

24.0

13.3

9.0

46.5

793.4

72.9

16.5

8.2

7.0

93.5

(5.9)

41.7

45.5

62.7

28.6

(50.3)

12 months to 31:12

(3.0)

53.1

Underlying%

3


Financial Results Financial Results Progress accelerated in H2

Turnover (£m)

Operating profit * (£m)

Profit before tax * (£m)

EPS * (p)

Operating margin * (%)

20032003H2H2

2002H2

Change%

380.6

27.5

32.2

7.7

7.2

402.7

57.4

57.8

13.3

14.3

5.8

108.7

79.5

72.7

97.3

Underlying%

4.3

143.8



The Last Three YearsThe Last Three YearsTransforming the business model

Business fundamentally re-engineered

Reduced 2000 fixed cost base by over 30 per cent

Strengthened market position

Yields defended

Increased organic investment

Strategic, well priced, acquisitions

Margin targets

2003 10 per cent target secured

Medium term target of 15 per cent

Maximised operating cash inflow

Balance sheet strength


2003 Recovery Underway2003 Recovery Underway

Publishing and exhibitions

Underlying healthcare revenue up by 31 per cent

H2 continuing tech revenue recovers to 2002 levels

Asia post-SARS H2 ahead of 2002

CMPi achieves 19 per cent margin with significant cost savings

UAP delivers 10 per cent profit growth


2003 Recovery Underway 2003 Recovery Underway

News Distribution

US wire volumes recovering towards year end

Yields improving

Significant restructuring and investment costs

Market Research

Syndicated and continuous strong

Healthcare recovering

Major restructuring to improve margin


Trading OutlookTrading OutlookH2 trends continuing

Publications and exhibitions Improving tech climate Growth in healthcareAsia returns to pre-SARS volumes UK business growing margins

News distributionVolumes and yields improvingEliminating losses in Europe

Market researchGrowth in year end order book Restructuring to improve margin and revenue growth

Acquisitions delivering

9

FINANCIAL REVIEW


Turnover (£m)

Operating profit * (£m)

Net Interest (£m)

Other finance expense (FRS17)

PBT * (£m)

Taxation (£m)

EPS * (p)

Dividend per share (p)

Average $: £ rate

Financial Results Financial Results

20032003 2002 Change %

793.4

64.9

10.1

(2.1)

72.9

(16.0)

16.5

7.0

1.51

746.7

99.4

9.4

(5.5)

103.3

(22.7)

24.0

9.0

1.64

(5.9)

53.2

41.7

41.5

45.5

28.6

8.6

12 months to 31:12



Operating profit (before goodwill)

Depreciation

Capex

Working capital/other

Operating cash inflow

Cash conversion

20022002£m£m

64.9

23.2

(10.9)

13.8

91.0

140%

Operating Cash ConversionOperating Cash Conversion

20032003£m£m

99.4

25.3

(6.9)

0.1

117.9

119%

12 months to 31:12

CashflowCashflow

Operating cash inflow

Dividends paid

Tax received

Net interest received

Acquisitions and investments, net of disposals

Payments relating to property and restructuring

Foreign exchange

Ordinary and B share repurchase

Other

Movement in cash

2002£m

91.0

(14.4)

15.3

4.4

(10.4)

(35.1)

24.0

(7.4)

(23.2)

44.212

20032003£m£m

117.9

(26.3)

8.4

2.3

(127.8)

(23.1)

13.0

(2.6)

(8.8)

(47.0)

12 months to 31:12

£ Cash

£ Debt

$ Cash (in £)

$ Debt (in £)

Other

Net Cash

Loans to five

Other financial expenses - FRS17

P&L Interest

Breakdown of Net Cash and Breakdown of Net Cash and Interest Interest

31:12:03 £m

Interest£m

191.0

(14.9)

415.5

(526.9)

(18.2)

46.5

160.3

9.5

(1.6)

7.5

(14.8)

(0.0)

8.8

(5.5)

3.9

13

Segmental AnalysisSegmental Analysis

Group TurnoverGroup Turnover Operating ProfitOperating Profit

Total Total Growth on Prior Year TotalTotal Growth

£m£m Reported%

Currency%

Acquisition%

Underlying%

£m£m Reported%

Underlying%

CMP Media 210.5 (11.6) (7.5) 1.0 (5.4) 14.8 317.6 384.4

CMP Asia 44.4 (13.1) (7.4) 0.0 9.9 12.6 (8.0) 20.3

CMPi 135.0 5.8 (0.5) 13.9 (9.6) 25.3 150.5 130.1

UAP 58.1 0.0 0.0 0.5 (0.5) 14.0 10.2 12.4

PR Newswire 94.8 (10.1) (6.8) 0.0 (3.4) 13.4 (22.5) (9.3)

NOP World 203.9 (4.3) (4.4) 0.5 0.5 19.3 7.8 30.5

Total 746.7 (5.9) (4.9) 2.7 (3.0) 99.4 53.2 67.4

14

12 months to 31:12:03


Underlying 2003 Revenue Underlying 2003 Revenue ChangeChange

Acquisitions

£21.7m

Biennials

£1.8m

SARS

(£8.8m)

Forex

(£38.8m)

Underlying

Decline

(£22.5m)

(3.0%)


Geographic Segmental Geographic Segmental Analysis Analysis

US 60%UK 30%

EMEA

5%

Pacific

5%

Revenue Operating Profit

UK 25% US 51%

Pacific

11%EMEA

13%


InvestmentInvestment

Net debt capacity increased to around £500mMinimum interest cover of 5 timesConservative approach to financing$375m of debt to be retired in 2004

Acquisition financial criteria

8% post tax hurdle rateGenerally eps enhancing first full year

Organic investment target paybacksPublishing and events in 1 to 2 yearsPRN and NOP in 3 to 5 years


Investments DeliveringInvestments DeliveringOn track to generate 2004 £13m operating profit

Acquisitions

Consideration

£m

CMPi Builder / Barbour, Property Media

81.0

CMP Media Oncology / Cliggott 23.1

UAP This Caring Business 1.7

NOP Eurisko 24.1

Total 129.9

Contributed £2.9m in 2003 profit


Operating profit/(loss)

Investments DeliveringInvestments DeliveringOrganic initiatives

Turnover

H1£m

H2£m

Total £m

16.4 24.2 40.6

(2.8) (1.3) (4.1)


20032003£m£m

2002£m

Change%

12 months to 31:12 *

Turnover

Operating profit

259.9

8.5

244.7

(4.8)

6.2

277.1

Audience share up to 6.6%

Advertising share up to 8.1%

Net book values:five £129.4 mOther investments £43.6 m

* Unaudited

21

OPERATIONAL REVIEW


Margin Performance Margin Performance

2003%

2002%

TOTAL 13.3 8.2

CMP Media

7.0 -

CMP Asia 28.4 26.8

CMPi 18.7 7.9

UAP 24.1 21.9

PR Newswire

14.1 16.4

NOP World

9.5 8.4


Operating Profit (£m)

Operating Margin (%)

Professional MediaProfessional Media: CMP : CMP MediaMedia

Turnover (£m)

20032003 2002 Change %

210.5 238.2 (11.6)

14.8

7.0

(6.8)

-

317.6

-

12 months to 31:12


-30

-20

-10

0

10

20

30

40

50

Enterprise Software Electronics Applied Network Channel Healthcare

H1 2003 Vs H1 2002H2 2003 Vs H2 2002

CMP Media Product AreasCMP Media Product AreasPercentage $ revenue change


CMP Media CMP Media 2003 Review

Scale improvements in operating efficiency

Increased market share to 28.9 per cent

Yields firm, up 4 per cent in ’03, 8 per cent in H2

Channel strong, also online and events

Traction in organic product developments

Over £10m in revenue in 2003

Adding £3m to operating profit


-50

-40

-30

-20

-10

0

10

20

Jan-0

2

Mar

-02

May

-02

Jul-0

2

Sep-0

2

Nov-

02

Jan-0

3

Mar

-03

May

-03

Jul-0

3

Sep-0

3

Nov-

03

Jan-0

4

Total Market CMP Top CMP Titles

CMP Media CMP Media High Tech Ad page volumes% change on same month in prior year

Large higher yielding titles trending better than total


CMP Media CMP Media 2003 Review - Healthcare

CME, Print, Events, Online

Healthcare H2 ad page volumes up 4 per cent

Underlying revenues up 42 per cent in H2

Well positioned in fast growing sectors

Psychiatry & Neurology

Acquired leading Oncology titles

Acquisition outperforming business case

Benefiting from increase in new drug launches




Professional MediaProfessional Media: CMP : CMP AsiaAsia

Turnover (£m)

20032003 2002 Change%

44.4 51.1 (13.1)

12.6

28.4

13.7

26.8

(8.0)

5.8

12 months to 31:12


CMP AsiaCMP Asia2003 Review

Post-SARS H2 performance well ahead of prior year

SARS – recovered £3.8m in insurance

Growth in China

Successful Japanese acquisition (KSS)

H2 growth in jewellery and shipping

14 new launches during 2002 & 2003

7 scheduled for 2004




Professional MediaProfessional Media: CMPi: CMPi

Turnover (£m)

20032003 2002 Change%

135.0 127.6 5.8

25.3

18.7

10.1

7.9

150.5

136.8

12 months to 31:12


CMP InformationCMP Information2003 Review

Underlying revenue down 9.6 per cent

Underlying profit up 130.1 per cent

Significant costs savings drive margin to 18.7 per cent

Successful new products

£81m of acquisitions on track to deliver £9m 2004

profit




Professional MediaProfessional Media: UAP: UAP

Turnover (£m)

20032003 2002 Change%

58.1 58.1 0.0

14.0

24.1

12.7

21.9

10.2

10.2

12 months to 31:12


UAPUAP2003 Review

Delivered strong profit growth on flat revenues

Achieved further operating efficiencies

All major products grew profits

Strengthening position in core markets

Successful cross selling: Auto Exchange / E&M

Strength of new products / online:

DaltonsBusiness.com

Integrated “This Caring Business” to plan

Widens range of specialised titles


PR Newswire - News PR Newswire - News DistributionDistribution

20032003£m£m

2002£m

Change%

Turnover

America

RoW

Operating profit

America

RoW

86.0

8.8

94.8

16.1

(2.7)

13.4

14.1

(10.0)

(10.2)

(10.1)

(16.6)

-

(22.5)

(13.9)Margin

95.6

9.8

105.4

19.3

(2.0)

17.3

16.4

12 months to 31:12


Quarterly Newswire VolumesQuarterly Newswire VolumesCore US News Distribution in thousands

46.4

42.0

48.7

45.944.3

41.941.1

48.6

42.3 43.4

Q1 Q2 Q3 Q4

2001 2002 2003

H1 volumes down 8%, H2 just ahead of prior year54.7 54.8

35k->


PR Newswire – News PR Newswire – News DistributionDistribution2003 Review

Message volumes up in Q4 2003

No of US companies declined again (down net 300)

During 2003 IPOs started overtaking delistings

Discretionary releases increasing

New product announcements up 9 per cent

Newswire H2 yields up 1 per cent

Margins held back in H2 due to restructuring and

organics

Europe and Asia challenging

High operational leverage


NOP World - Market NOP World - Market ResearchResearch

20032003£m£m

2002£m

Change % Turnover

America

RoW

Operating profit

America

RoW

127.6

76.3

203.9

14.0

5.3

19.3

9.5

(7.7)

2.0

(4.3)

8.6

6.7

7.8

12.6Margin

138.2

74.8

213.0

13.0

4.9

17.9

8.4

12 months to 31:12


NOP World – Market ResearchNOP World – Market Research2003 Review

Strong performances from syndicated and continuous

Healthcare and ad hoc improving

Underlying margin growth

Restructuring to improve margin and drive key sector

growth

Strengthened management team

Substantial investment in new products

Eurisko acquired

Leading position in Italy & new products for NOP

network

Rapid growth in online


SummarySummary

Business model transformed

Yields and revenue improving

Investment programme success

Revenue and margin growth

Investments delivering, more to

come

Trading climate improving

2003 Achievements2003 Achievements 2004 Outlook2004 Outlook

Intelligent Media United Business Media. 2 2003 Highlights Strong profit growth Effective cost management Improving yields and revenue Successful investment.

Documents

margin slide

business model business

cent profit growth slide

financial review slide

operating cash conversion

prior year exceptionals

p operating margin

revenue operating profit